We Speak on BNN About Bernanke, Inflation, China Posted on February 4, 2011 by Yves Smith We had a wider ranging chat than usual at BNN today. You can view the video here. Enjoy! Post navigation ← Links 2/3/11 Pete Peterson Using High School Courses As Trojan Horse for Anti-Social Security, Medicare Propaganda → Subscribe to Post Comments 6 comments Fed Up February 4, 2011 at 2:48 am I think you need to replace the phrases “talking up the economy” and “confidence” with trying to trick people into going into debt again. I also have a sneaking suspicion that bernanke is also trying to trick people out of savings accounts, checking accounts, and money market accounts back into the stock market so that some leveraged players who got in at lower levels have someone to sell to when interest rates eventually rise. Fed Up February 4, 2011 at 2:53 am Instead of more jobs, do we need more retirees? Fed Up February 4, 2011 at 3:01 am It seems to me china wants to run a trade surplus for as long as they are allowed to. As long as they run a big enough trade surplus, do they need to worry about bad debt? About interest rates in the USA, it seems to me china is selling us stuff (keeping tradable goods prices low), wants to continue that, pegs the currency, and then has to buy financial assets (usually the highest yielding debt that won’t default on them). What happens when they escape their “dollar trap” by finding other places to export to like Africa and Latin America? Will it be no more selling us as much stuff (possibly leading to price inflation in tradable goods), no need to peg the currency, no need to buy financial assets, and then higher interest rates? david February 4, 2011 at 3:56 pm Excellent interview! I appreciate the presentation. I hate it when people smile when they are talking about serious subjects. Well stated and delivered. Excelent. F. Beard February 4, 2011 at 8:05 pm Yes. Nice interview. Thanks. Indigenous Centurion February 5, 2011 at 12:04 am ” Yves Smith ” Thoroughly enjoyable. I have always admired the way you can talk so fast yet retain your train of thought. I mean you have to know every ramification of your subject inside, outside, backwards and forward for that kind of presentation. Thanks, Your Yveness ! Comments are closed. Tip Jar Please Donate or Subscribe!